AUTO INSURANCE CHANGES 
Auto Insurance Benefits Changes: What You Need to Know
Beginning July 1, 2026, Ontario’s auto insurance system will introduce new options designed to provide greater choice and flexibility in your coverage. These changes will allow you to select insurance protection that better aligns with your individual needs and budget. Medical, rehabilitation, and attendant care benefits will continue to be mandatory, ensuring access to essential recovery support for all drivers. However, all other accident benefit coverages will become optional, and the way these optional benefits apply to individuals covered under your policy will also change.
At Cayuga Mutual Insurance Company, we believe your insurance coverage should reflect what matters most to you. As a mutual insurer owned by our policyholders, our priority is always to serve your best interests. To help you better understand these upcoming changes, we have prepared the following resources. We encourage you to review them and contact your agent or broker if you have any questions or would like to discuss your coverage options further.
1. What are Statutory Accident Benefits?
Statutory Accident Benefits (SABs) can provide financial support if you are injured in an auto accident. These benefits can be available regardless of who caused the accident and can cover things like medical treatment, rehabilitation and income if you can’t work because of your injuries.
2. Who is covered?
While existing policies will continue to renew with the same coverage and limits, the eligibility rules for who is covered under the new optional accident benefits will change effective July 1, 2026, regardless of the policy renewal date.
Optional accident benefits included in your auto policy will apply only to the following individuals:
- The named insured
- The spouse of the named insured
- Dependents of the named insured or their spouse
- Individuals listed in the policy as drivers of the insured vehicle
3. Will passengers in my vehicle still have coverage if I choose to decline certain optional benefits?
Effective July 1, 2026, optional accident benefits coverage will apply only to the named insured, their spouse, dependents of the named insured or their spouse, and any listed drivers on the policy. Passengers injured in an automobile accident will not be eligible for optional benefits unless they fall within one of these covered groups under a policy that includes optional benefits. Standard accident benefits coverage, however, will continue to apply to all passengers.
4. Will these changes impact my existing policy?
Yes. For renewing customers, most accident benefits, with the exception of medical, rehabilitation, and attendant care coverage, will become optional. Your policy will automatically renew with your existing coverage and limits unless you choose, in writing, to decline or adjust certain benefits.
5. What do I need to do?
- Review your current auto insurance policy to understand the benefits and coverage you currently have in place.
- Consider any coverage you may already have through your employer, private benefits plan, or life and health insurance providers.
- Assess your needs and determine the coverage that best suits you, your spouse, dependents, and any listed drivers on the policy.
- Contact your agent to discuss your options and learn more about the available coverages.
We’re here to help you make informed decisions and select the coverage that best aligns with your needs and budget. To help you get started, you can view or download the Self-Assessment Checklist.
6. Why might someone choose to add, remove, or decline optional benefits?
Some Ontarians may already have similar coverage through employer-sponsored benefits or private insurance plans. These reforms move away from a one-size-fits-all approach, giving consumers greater flexibility to choose the coverage they want and avoid paying for benefits they may already have elsewhere. It is important to note that any changes made to optional accident benefits will apply only to individuals who meet the policy’s definition of “who is covered.”
Explore these customer scenarios to see examples of how auto insurance coverage can be customized to better meet the needs of individuals and families.
7. Which accident benefits will remain mandatory, and which will become optional?
Standard medical, rehabilitation, and attendant care benefits will continue to be included in all auto insurance policies. These mandatory benefits are available regardless of who is at fault in an accident and help cover expenses related to injuries sustained in a collision, including medical treatment, therapy, and personal care assistance such as support with daily activities like bathing and dressing.
To provide drivers with greater choice and flexibility, all other accident benefits will become optional. Depending on your individual needs, you may choose to add, remove, or decline these coverages for yourself and other eligible individuals covered under the policy.